A dual listing on the New York Stock Exchange was supposed to give Diversified Energy Company (LON: DEC) a boost, but the day after trading commenced, the London share price has dived 16.2% to £10.99. This comes as Democratics in the US opened an inquiry into the company and questioning its business model.
They are concerned about The US oil and gas producer’s methane emissions and abandonment risk. Chief executive Rusty Hutson has been sent a nine-page letter requesting information on methane leakage and other business matters. There is a concern that when wells are abandoned they could leave billions of dollars of clean up costs for state governments.
Diversified Energy Company has interests in 65,000 wells in the US and it is estimated to be the fourth-largest methane emitter among oil and gas producers in 2022 – based on a Environmental Protection Agency estimates.
The Democrats are on the House Energy and Commerce Committee, but this is controlled by Republicans, so they have limited power. Even so, it is negative publicity for Diversified Energy Company and the timing of the letter was probably not an accident.
